Investment sentiment becoming more optimistic

ROSIER OUTLOOK: ING’s quarterly survey found that 35 percent of investors said they expected the TAIEX to improve this quarter, up from 9 percent in the previous survey

By Joyce Huang / STAFF REPORTER

Taiwan’s investor sentiment saw the biggest improvement last quarter compared with 12 other Asian countries, with 43 percent of local investors saying they were optimistic about the nation’s economic performance for this quarter, ING’s quarterly survey, the Investor Dashboard Sentiment Index, showed yesterday.

The index in Taiwan rose for the third consecutive quarter to 95 in the first quarter of this year and edged up from “pessimistic” to “neutral” attitude, the survey showed.

Local investors’ optimism was also reflected in their outlook for the stock market and return on investments.

The poll found that 35 percent of local investors said they expected the TAIEX to improve this quarter, up from 9 percent in the previous quarterly survey, while 40 percent said they expected their returns on investments would also rise this quarter, up from 13 percent in the previous survey.

The increases in both categories also topped Asia, the survey showed.

Optimism among Taiwanese investors was reflected in their more aggressive investment decisions.

Local investors’ preference for high-risk investments increased from 15 percent in the fourth quarter of last year to 31 percent last quarter, while their preference for low-risk investments decreased from 54 percent to 39 percent.

For this quarter, 35 percent of local investors said that they intended to have more deposit/cash holdings, down from 51 percent found in the previous survey.

The index of investor confidence has also returned to “optimistic” in India and China.

Some 56 percent of Chinese investors were optimistic about China’s economy for this quarter, the poll showed.

China’s growth potential has attracted investments from other Asian countries.

The survey found that most investors in Hong Kong, South Korea, Malaysia, Singapore and Taiwan had chosen China as their top foreign investment destination. Overall, the survey’s pan-Asian (minus Japan) index rose from 73 in the fourth quarter last year to 85 in the first quarter of this year, returning to the neutral from pessimistic territory, despite weak global economic conditions.